The investment fund landscape has transformed rapidly over the past decade, driven by a combination of technological innovation, global financial shifts, and increasing interest in sustainable investments. In 2025, investment funds are experiencing significant changes, reflecting broader economic trends and shifts in investor preferences. Whether you’re a seasoned investor or someone just dipping their toes into this world, understanding the key statistics behind this transformation is essential.
Editor’s Choice: Key Milestones in Investment Fund Growth
- The global number of investment funds reached 150,000 in 2025, marking a 3.4% increase from the previous year.
- The total value of investment funds globally surpassed $145.4 trillion in 2025.
- ETFs now account for 35% of the total investment fund market in 2025.
- Sustainable and ESG-focused funds experienced net outflows of $8.6 billion in Q1 2025, reflecting shifting investor sentiments.
- The average annual return for investment funds across all categories stood at 7.8% in 2025, indicating stable market conditions.
- Hybrid funds, combining stocks and bonds, saw a growth of 18% in 2025, highlighting investor preference for diversified portfolios.
- The Asia-Pacific region accounted for 45% of global fund launches in 2025, solidifying its position as a leading market for new investment funds.
Global Investment Apps Market Forecast
- The global investment apps market is projected to reach $254.9 billion by 2033, showing robust long-term growth potential.
- By 2025, the market is expected to grow to $63.0 billion, fueled by increasing mobile adoption and retail investing trends.
- The market will cross the $100 billion mark in 2028, reaching $106.4 billion, nearly 2.5x the size from 2023.
- A significant jump is projected in 2030, with the market hitting $150.9 billion, reflecting expanded user engagement and fintech innovation.
- The CAGR (Compound Annual Growth Rate) is projected at 19.1%, indicating aggressive annual growth over the forecast period.
- By 2032, the market size will rise to $214.0 billion, before peaking at $254.9 billion in 2033, more than 5.7x growth from 2023.
Number of Funds
- The United States maintains its lead with 7,022 active mutual funds as of January 2025, representing approximately 24% of the global total.
- The European fund market follows with 5,988 active investment funds, driven by a strong push for green finance and sustainable investments.
- In Asia, the number of funds has surged to 20,000, fueled by increasing middle-class wealth and evolving financial markets in countries like China and India.
- Emerging markets such as Brazil and South Africa have witnessed an uptick in the number of local funds, collectively reaching 5,000 in 2025.
- The alternative investment fund sector, including hedge funds and private equity funds, has expanded to 10,500 funds, reflecting the growing interest in diversified investment strategies.
- Pension funds have grown to account for 25% of the global investment fund market, highlighting the increasing need for retirement savings solutions.
- Real estate funds continue to rise, now representing 15% of all investment funds globally, catering to the growing demand for property investments.
Total Fund Assets
- Global investment fund assets have reached $145.4 trillion, reflecting robust growth in the asset management industry.
- U.S.-based funds continue to dominate, managing approximately $35 trillion in assets, accounting for 50% of global fund assets.
- European investment funds have total assets under management (AUM) of around $25 trillion, with a strong emphasis on ESG and sustainable investments.
- China’s fund assets have grown to approximately $7 trillion, driven by increased domestic investment and market development.
- Global ETF assets have surpassed $10.37 trillion, fueled by investor demand for low-cost, diversified investment options.
- Money market funds hold approximately $6.95 trillion in assets, maintaining their position as a preferred choice for conservative investors.
- Alternative investment funds, including hedge funds and private equity, have expanded to nearly $4.2 trillion in assets, reflecting growing interest in diversified investment strategies.
Asset Flows in Mutual Funds & ETFs
- Money Market funds led all categories with $73.7 billion in inflows, reflecting a strong shift toward low-risk liquidity options.
- Fixed Income products saw the second-highest inflows at $44.8 billion, signaling continued interest in bond markets amid rate shifts.
- Equity funds brought in $12.8 billion, showing stable yet more modest investor confidence in stock markets.
- Commodities attracted $7.2 billion, indicating rising investor attention in inflation-hedging or diversification strategies.
- Alternative investments gained $2.5 billion, highlighting selective interest in hedge funds and private assets.
- Miscellaneous categories added $467 million, contributing a small but positive flow to the overall market.
- Allocation funds experienced a net outflow of $10.7 billion, possibly due to a shift away from blended strategies.
Fund Returns
- Global equity funds delivered an average return of 12.2%, driven by strong performances in European and Latin American markets.
- Bond funds achieved an average return of 3.5%, with high-yield bonds offering yields around 7%.
- Real estate investment trusts (REITs) provided average returns between 5% and 15%, reflecting a rebound in the sector.
- Hedge funds posted an average return of 4%, with macro strategies leading the gains.
- ESG-focused funds experienced net outflows, indicating a challenging period for sustainable investments.
- Balanced funds returned an average of 10.37%, offering diversified exposure to equities and bonds.
- Infrastructure funds are targeting net returns between 12% and 15%, supported by significant fundraising efforts.
Fund Portfolio Investments by Country and Currency for Closed-End Funds
- US-based closed-end funds manage over $1.5 trillion in assets, with the US dollar as the primary currency.
- European closed-end funds have grown to manage €900 billion in assets, with the euro representing the largest share of currency allocation.
- UK closed-end funds manage assets worth over £266 billion, benefiting from strong investor confidence in real estate and alternative investments, with the British pound as the main currency.
- China’s closed-end funds now hold over ¥3 trillion in assets, reflecting the country’s expanding financial markets and the increasing role of the Chinese yuan.
- Japan’s closed-end funds have grown to manage ¥1.2 trillion in assets, with a strong focus on domestic equities and real estate, using the yen as the dominant currency.
- Brazilian closed-end funds are growing in popularity, managing R$500 billion in assets, with the Brazilian real as the primary currency, as investors seek exposure to emerging market opportunities.
- Canadian closed-end funds now manage CAD 200 billion in assets, with the Canadian dollar representing the major currency, especially in the resource and energy sectors.
Global Mutual Fund Assets Market Forecast (2024–2029)
- By 2025, the market is projected to rise to $745.82 billion, showing early momentum.
- The forecast anticipates a compound annual growth rate (CAGR) of 10.6%, underlining a healthy upward trend.
- The market will continue expanding in 2026, with a significant increase in asset size, maintaining a steady climb.
- By 2028, the market is expected to near the $1 trillion mark, affirming mutual funds’ global appeal.
- In 2029, the mutual fund asset market is forecasted to reach $1,116.72 billion, marking a 66%+ increase from 2024.
Fund Portfolio Investments by Country and Currency for ETFs
- US-based ETFs manage over $10.48 trillion in assets, with the US dollar as the primary currency.
- European ETFs have reached $2.41 trillion in assets, with the euro being the dominant currency.
- China’s ETF market has expanded to over $520 billion, driven by domestic demand and the growing global interest in Chinese stocks and bonds, with the Chinese yuan as the primary currency.
- Canadian ETFs now manage CAD 544.8 billion in assets, focusing on commodities and natural resources, making the Canadian dollar the primary currency.
- Japan’s ETF market holds over $100 billion in assets, with the yen remaining the dominant currency, focusing on domestic equities and technology sectors.
- UK ETFs manage over £350 billion in assets, with a strong focus on large-cap UK stocks and real estate, denominated in British pounds.
- Australia’s ETF market has grown to over AUD 300 billion, primarily invested in the mining and energy sectors, using the Australian dollar as the main currency.
Recent Developments in the Investment Fund Industry
- The SEC has mandated monthly public disclosures of fund holdings within 30 days post-month-end to enhance transparency and reduce hidden fees in the US mutual fund industry.
- The European Commission is advancing SFDR 2.0, aiming to simplify and improve the effectiveness of ESG disclosures, with proposals expected in Q4 2025.
- Decentralized Finance (DeFi) assets under management have reached $32.36 billion, reflecting the growing adoption of decentralized protocols in the investment fund industry.
- M&A activity in the fund industry is on the rise, with significant deals like Citigroup’s sale of its private market funds unit to iCapital, indicating a trend toward consolidation and scaling operations.
- Thematic investing continues to gain traction, with assets in thematic funds surpassing $2 trillion globally, driven by investor interest in sectors like technology, healthcare, and renewable energy.
- Actively managed ETFs are experiencing robust growth, with assets under management projected to reach $1.1 trillion, as investors seek alternatives to passive index-tracking funds.
- Private equity fund closures have decreased, with 473 exits totaling $80.81 billion in Q1 2025, marking the lowest quarterly totals since Q1 2023, amid heightened competition and economic uncertainty.
Conclusion
The investment fund industry shows no signs of slowing down. From sustainable investing to technological advancements, the landscape continues to evolve rapidly, offering a diverse range of opportunities and challenges for investors. Whether it’s the steady rise of ESG funds, the increasing role of technology in fund management, or the robust growth of money market funds, the trends shaping the market today are set to define the future of investing. Investors must stay informed and adaptable as the industry continues to innovate and respond to global economic conditions.
